Input VAT Adjustment in Group Relationship: Annotated BFH 06.12.2023 XI R 5/20
- Input tax correction in the case of a tax group
- Payments made by the parent company to suppliers of the subsidiary, due to financial difficulties of the subsidiary, were challenged by the parent company’s insolvency administrator
- If the supplier refunds the parent company, it leads to an input tax correction for the subsidiary to which the services were provided
- Example: T-GmbH as the parent company and S-GmbH as the subsidiary had a VAT group. T-GmbH paid for many deliveries to S-GmbH due to financial difficulties. The VAT shown on the invoices to S-GmbH was claimed as input tax by T-GmbH as the parent company.
Source: datenbank.nwb.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
